3M's 4% Stock Rises On Earnings Beat. Growth Is Picking Up

3M Company (NYSE: MMM) shares surged by 4% in pre-market trading on Tuesday, January 21, 2025, following the release of its fourth-quarter and full-year 2024 results. The industrial conglomerate reported adjusted earnings per share (EPS) of $1.68, beating analyst estimates of $1.66, and provided guidance for 2025 that exceeded expectations. The company's strong performance and positive outlook have investors optimistic about its future growth prospects.

3M's fourth-quarter results met or slightly exceeded market expectations, with adjusted EPS from continuing operations of $1.68, down 2% year-on-year, and GAAP EPS from continuing operations of $1.33, up 17% year-on-year. Revenue for the period rose marginally to $6.01 billion, ahead of the $5.78 billion consensus forecast. All three of 3M's business segments recorded organic growth, with new product launches increasing by 32% over the year, exceeding the company's targets.

The company's full-year 2024 results also showed strong performance, with adjusted EPS from continuing operations of $7.30, up 21% year-on-year, and GAAP EPS from continuing operations of $7.26. Sales for the year were down 0.1% year-on-year, with adjusted sales of $23.6 billion and organic growth of 1.2%.

3M's CEO, William Brown, attributed the company's success to its strong operational execution, which helped deliver double-digit earnings growth and robust free cash flow while returning $3.8 billion to shareholders. The company's 2025 financial guidance, which includes adjusted total sales growth of 0.5 to 1.5 percent, adjusted EPS of $7.60 to $7.90, and adjusted operating cash flow of $5.2 to $5.3 billion, reflects the company's confidence in its ability to continue delivering on its turnaround plan.